If the Demand for Money Decreases, but the Fed Keeps

question 12

Multiple Choice

If the demand for money decreases, but the Fed keeps the money supply the same:​

• A)​nominal interest rates will rise and aggregate demand will fall.
• B)​nominal interest rates will rise and aggregate demand will rise.
• C)​nominal interest rates will fall and aggregate demand will fall.
• D)​nominal interest rates will fall and aggregate demand will rise.

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Definitions:

Communication

The process of conveying information or expressing ideas and feelings through verbal, nonverbal, written, or visual means.

Motivation

The internal and external factors that stimulate people to take actions that lead to achieving a goal.

Reporting Relationships

The formal lines of authority and accountability within an organization, detailing who reports to whom.

Communication Linkages

The channels and methods by which information is shared and transferred within an organization or between different entities.